Governance, Risk, and Compliance Handbook: Technology, Finance, Environmental, and International Guidance and Best Practices

CHAPTER 34

SHIPPERS COMPLIANCE IN FREIGHT TRANSPORTATION AND LOGISTICS

David Jacoby

34.1 INTRODUCTION

34.2 KEY REGULATORY BODIES

34.3 IMPORT REQUIREMENTS

(a) Prohibited Items

(b) Import Duties

(c) Valuation

(d) Import Documentation

(e) Voluntary Programs: CT/PAT and Others

34.4 EXPORT REQUIREMENTS

(a) Prohibitions

(b) Import Duties to Foreign Countries

(c) Export Documents

34.5 HAZARDOUS MATERIALS

34.6 OTHER GENERALLY ACCEPTED PROTOCOLS AND STANDARDS

(a) Incoterms

(b) Letters of Credit

34.7 THE INCREASING IMPORTANCE OF CONFORMANCE TO CUSTOMER STANDARDS

34.8 CONCLUSION

NOTES

34.1 INTRODUCTION

Rules and regulations in the transportation and logistics field may be grouped into two categories: (1) regulation that affects carriers (transportation and logistics companies providing freight movement services) and (2) regulation that affects shippers (companies that hire others to move freight). The government imposes many regulations on carriers that shippers may be unaware of. Conversely, many shippers are unaware of the regulations imposed on the carriers that they hire.

This chapter highlights significant regulations faced by shippers—companies hiring other companies to move freight—and a separate one (Chapter 40) focuses on regulations affecting carriers. Both provide an overview of the bodies of law affecting each group so both shippers and carriers may have an appreciation for the regulatory environment affecting each other, as well as a familiarity with the most common laws that ...